Two of the best automobile companies That motors and Ashok Leyland have created well-defined and financial incentives based scrappage policy. It will create demand for commercial vehicles. This segment has come to a grinding halt. The policy is in work for some time now. The policy will put the vehicle cap in the terms of its run.
Sales have declined continuously for a year now, first due to some of the normal BS-VI emission and now due to the coronavirus outbreak.
The automobile industry will be helpful if old vehicles will go out of the area. It will also reduce pollution. It will also help to induce demand for new vehicles.
The leader of the commercial vehicle segment, Tata Motors has stated that the coming legislation should define incentives clearly. And also the regular norms for disposing of the old vehicles.
For the sale of new vehicles, the reiteration that replacement demand will remain the key driver.
The spokesperson also stated that the policy should be given a proper and clear definition of end-of-life vehicles. And also the inclusion of financial incentives.
Recently, the government proposed a policy that the renewal of vehicles fitness certificates older than 15 years every six months. Nowadays, one year is also enough.
A further spokesperson stated that the scrappage value chain is in its early stages in India. It is able to process ELVs percentage in lower double-digit which are available on the road.